§ 673.345 — Payment or acceptance of commissions; contingent fees; referral fees; rules

Oregon § 673.345

• Jurisdiction: Oregon
• Vol.: 17
• Title 52: Occupations and Professions
• Ch. 673: Accountants; Other Tax Professionals

Text

(1)(a) A certified public accountant, a public accountant or a business organization registered under ORS 673.160, when the conditions set forth in paragraph (b) of this subsection are present, may not:
(A) Pay a commission to obtain a client;
(B) Accept a commission for a referral to a client of products or services of others; or
(C) Accept a commission for a referral of products or services to be supplied by a client.
(b) The prohibition on commissions set forth in paragraph (a) of this subsection applies only when the holder or business organization, or any of the partners, officers, shareholders, members, managers or owners of the holder or business organization, performs:
(A) Client attestation services; or
(B) A compilation of a financial statement for a client, if the compilation report does not disclose a lack of independence.
(2)(a) A certified public accountant, a public accountant or a business organization registered under ORS 673.160 may:
(A) Perform for a contingent fee any professional service for a client; or
(B) Receive a contingent fee for any professional service performed for a client.
(b) Notwithstanding paragraph (a) of this subsection, a holder or business organization may not accept a contingent fee under paragraph (a) of this subsection from a client for whom the holder or business organization, or any of the partners, officers, shareholders, members, managers or owners of the holder or business organization, performs:
(A) Client attestation services; or
(B) A compilation of a financial statement for the client, if the compilation report does not disclose a lack of independence.
(3) A certified public accountant, a public accountant or a business organization registered under ORS 673.160 may not prepare for a contingent fee an original or amended tax return or a claim for a tax refund for any client.
(4) The prohibitions described in subsections (1) to (3) of this section apply during the period in which the certified public accountant, public accountant or business organization registered under ORS 673.160 is engaged to perform any of the services described in subsection (1)(b) or (2)(b) of this section and during the period covered by any historical financial statements involved in any of the services. The Oregon Board of Accountancy by rule may modify the period when the prohibitions described in subsections (1) to (3) of this section are applicable.
(5)(a) Any certified public accountant, public accountant or business organization registered under ORS 673.160 that expects or accepts a fee for recommending or referring any product or service to any person or entity, or that pays a referral fee or other valuable consideration to obtain a client, shall disclose the expectation, acceptance or payment to the client.
(b) The board by rule shall specify the manner and form in which disclosures under this subsection shall be made. The rules shall require that disclosures required by this subsection:
(A) Be made in clear and conspicuous writing;
(B) Be made on or before the time at which the recommendation or referral that is the basis of the fee is made, or before the time the client retains the certified public accountant or public accountant to whom the client has been referred and for which a referral fee or other valuable consideration has been paid; and
(C) Be acknowledged by the client in a writing that is signed and dated by the client.
(6) This section does not prohibit:
(a) Payments for the purchase of all or any part of an accountancy practice; or
(b) Retirement payments to individuals presently or formerly engaged in the practice of public accountancy or payments to their heirs or estates.

Legislative History

1989 c.524 §2; 2001 c.313 §2; 2025 c.132 §21